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Union Voting Starts At Volkswagen Plant in Tennessee

By Nithya Bose in Business News, posted April 18, 2024

Voting has started over unionizing at the only Volkswagen factory in the US in Chattanooga, Tennessee.

Over 4,000 employees started voting this Wednesday, April 17, with results expected by week's end.

It marks a significant test for the UAW's expansion goals outside its traditional base.

Historically, the UAW has not managed to unionize any foreign-owned auto-manufacturing plants in the US.

It faces a challenge in Southern states where anti-union sentiments are strong and right-to-work laws prevail.

However, the UAW leadership is eager to leverage recent successes under President Shawn Fain's new direction.

It includes a landmark agreement with General Motors, Ford, and Stellantis that included a 25 percent pay rise over four years and improved benefits secured after a six-week strike.

This Volkswagen union drive is seen as a critical referendum on Fain’s strategy to empower workers and expand the union's influence across the southern automotive sector.

Union is looking to expand into the south

The UAW once boasted 1.5 million members in the 1970s but has since declined to about 370,000.

It sees an opportunity to reverse this trend and broaden its representation, potentially impacting negotiations with a larger group of automakers by 2028.

Workers supporting the unionization effort at Volkswagen cite desires for better pay, work schedules, and additional benefits.

Volkswagen maintains it offers competitive pay and supports the workers' right to a secret ballot vote overseen by the National Labor Relations Board.

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The UAW's push in Chattanooga is part of a broader ambition to organize approximately 150,000 workers at various automakers across the US, including giants like Toyota, Honda, and Tesla.

This move comes as the automotive industry experiences a tightening labor market, high inflation, and substantial profits, providing a fertile ground for union advances.

The outcomes of recent union drives in other sectors, such as Starbucks and Amazon, alongside major bargaining wins at UPS and Deere, suggest a potentially receptive climate for the UAW's initiatives.

Voting will take place in person at the factory, starting before dawn on Wednesday and continuing until 8 p.m. on Friday, April 19.

The NLRB is expected to announce the results by late Friday night.

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